Family Involvement and Firm Performance

Sumon Bhaumik and Ralitza Dimova
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Ralitza Dimova: University of Manchester

Chapter 4 in How Family Firms Differ, 2015, pp 69-94 from Palgrave Macmillan

Abstract: Abstract Since financial performance is a widely accepted summative measure of the impact of adopted strategies, managerial behaviour and other influences on a firm, it is hardly surprising that one of the most prolific areas of research on family businesses is the impact of family ownership and control on various measures of financial firm performance. For instance, O’Boyle et al. (2012) and Machek et al. (undated) have each identified 78 articles that compare quantitatively the performance of family and non-family firms. The early discussion about the impact of family ownership and control on firm performance was largely an extension of the owner-manager agency problem that was highlighted by Jensen and Meckling (1976). For example, in a much cited article, Daily and Dollinger (1992) examine the impact of family control on performance and conclude that “family-owned and -managed firms exhibit performance advantages as a result of the unification of ownership and control” (p. 117).

Keywords: Firm Performance; Family Business; Business Group; Family Involvement; Minority Shareholder (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-47358-5_4

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DOI: 10.1057/9781137473585_4

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